Synovus Trust Senior Portfolio Manager Dan Morgan has estimated that a Bumble IPO would value the company at $1.1 billion.
This is significantly below the $1.5 billion estimate Bumble itself has aimed for.
To reach the valuation, Morgan took into account figures from Spark Networks, Match Group and The Meet Group.
He noted that this conclusion might change significantly if Bumble begins to advertise to its users, saying “(…) when you start monetizing 41 million users, the numbers can get a lot more interesting.”
There may also be other ways for Bumble to hit its $1.5 billion target. If it manages to expand its offerings in networking and friendship, or expand internationally, this could help to inflate the figure.
Bumble should also be wary of the impact Facebook Dating may yet have, Morgan argues. This threat could put off some investors, who may want to see how much market share Zuckerberg and co. manage to take up.
Last week, Match Group criticised Bumble for its handling of the ongoing lawsuits between the two companies.
It suggested that Bumble was using the courts for PR ahead of an IPO, looking to publicise baseless criticisms of Match Group to create a “cloud” over Tinder.
The allegations are nothing more than an attempt to “control the narrative”, according to Match, who cite Bumble’s statement in the New York Times as evidence of their position.
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